Fission Uranium today announced that it has entered into a binding letter of intent with CGN Mining Company Limited, a Chinese company. Pursuant to the agreement, Fission and CGN Mining have agreed to proceed towards a C$82,226,059 private placement in which CGN Mining would make a strategic investment in Fission which will result in CGN Mining owning approximately 96,736,540 common shares of the Company plus an additional number of common shares equal to 19.99% of the number of common shares issued by Fission prior to the closing of the Offering pursuant to the exercise of outstanding convertible securities of the Company. The Subscription Shares will be issued pursuant to a subscription agreement between Fission and CGN Mining at a price of C$0.85 per Subscription Share on a private placement basis. The Subscription Shares may not be traded for a period of four months plus one day from the closing of the Offering.
Fission and CGN Mining have also agreed to proceed towards entering into an off-take agreement pursuant to which CGN Mining will agree to purchase uranium production from the PLS Property. Dev Randhawa, Chairman and CEO, of Fission Uranium, commented that this is an historic moment for the Canadian uranium industry. It is the first time a Chinese company has invested directly in a Canadian uranium company. We are thrilled that CGN Mining has chosen to invest in Fission, PLS and the Triple R deposit. CGN Mining understanding of the uranium business is superb and we are excited at the opportunity to work with them. CGN Mining knowledge and expertise will be invaluable as we progress PLS and add to shareholder value. Mr. Xing Jianhua, Chief Financial Officer of CGN Mining, said that CGN Mining and Fission Uranium have worked hard together to forge this partnership. Both companies have a strong drive to cooperate and achieve the synergy which will result in sustained, mutual benefit.
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